SALT LAKE CITY, Nov. 15 /PRNewswire/ -- JB's Restaurants Inc. (NASDAQ: JBBB) announced today a net loss of $2,408,000 or $0.49 per share for its fiscal fourth quarter ended Sept. 27, 1993, and $2,314,000 or $0.48 per share for the full year, including a provision for property dispositions, net of tax, of $2,601,000 or $0.54 per share. The provision for property dispositions is primarily related to the disposition of certain JB's Restaurants, Sbarro restaurants, and non- operating properties. These results compare with a net loss of $1,728,000 or $0.37 per share for the same quarter last year and a net loss of $771,000 or $0.17 per share for the prior year, including a provision for property dispositions, net of tax, of $1,928,000 or $0.42 per share and the impact of the adoption of Statement of Accounting Standards Number 109 of $214,000 or $0.05 per share.
Revenues for the fourth quarter were $26.9 million, a decrease of 13.3 percent over the same quarter last year. For the fiscal year, revenues decreased 7.5 percent to $114.8 million compared with $124.0 million last year. The decrease in revenues is primarily the result of fewer restaurants open during the periods primarily due to the restaurants sold in the fourth quarter of fiscal year 1992. In addition, same store JB's Restaurants sales declined 1.3 percent for the year, which was partially offset by new HomeTown Buffet restaurant openings. The company operated 97 JB's Restaurants at the end of the year compared to 109 at the end of the prior year.
"Although disappointed in the financial results for fiscal 1993, the company made significant progress in positioning its balance sheet for growth. This included the sale of non-strategic assets and the completion of a $5.2 million preferred stock offering with an affiliate of Alex, Brown & Sons Inc. This capital will be utilized to support our previously reported plan to develop 10 to 12 HomeTown Buffet restaurants in fiscal 1994," commented Clark D. Jones, chairman and chief executive officer.
JB's Restaurants Inc. has restaurant operations in 9 western states in which it operates 97 and franchises 15 JB's family-style restaurants and operates 6 franchised HomeTown Buffet restaurants. The company also owns an approximate 16 percent interest in HomeTown Buffet Inc. (NASDAQ: HTBB), the franchisor of HomeTown Buffet restaurants.
JB'S RESTAURANTS INC.
Consolidated Statements of Operations
Fourth Quarter Ended Fiscal Year Ended
Sept. 27, Sept. 28, Sept. 27, Sept. 28,
1993 1992 1993 1992
Total revenues $26,921,000 $31,066,000 $114,768,000 $124,045,000
Costs and expenses
Food cost 8,798,000 9,401,000 36,610,000 37,519,000
Restaurant operating
expenses 16,216,000 17,313,000 64,744,000 68,558,000
General &
administrative
expenses 2,079,000 1,608,000 7,143,000 6,377,000
Depreciation and
amortization 1,511,000 1,702,000 6,658,000 7,505,000
Charge for property
disposition 3,817,000 3,175,000 4,264,000(b) 3,175,000(a)
Total costs and
expenses 32,421,000 33,199,000 119,419,000 123,134,000
Income (loss) from
operations (5,500,000) (2,133,000) (4,651,000) 911,000
Gain on sale of
investment in
preferred stock 1,727,000 --- 1,727,000 ---
Interest and
other income
(expense), net (176,000) (581,000) (873,000) (2,218,000)
Loss before
income taxes (3,949,000) (2,714,000) (3,797,000) (1,307,000)
Income taxes
(benefit) (1,541,000) (1,200,000) (1,483,000) (750,000)
Loss before
cumulative
effect of change
in accounting
principle (2,408,000) (1,514,000) (2,314,000) (557,000)
Cumulative effect
of change in
accounting
principle --- (214,000)(c) --- (214,000)(c)
Net loss ($2,408,000) ($1,728,000) ($2,314,000) ($771,000)
Net loss per common
share before
cumulative effect of
change in accounting
principle ($0.49) ($0.32) ($0.48) ($0.12)
Cumulative effect of
change in accounting
principle --- (0.05) --- (0.05)
Net loss per
common share ($0.49) ($0.37) ($0.48) ($0.17)
Weighted average shares
outstanding 4,925,000 4,626,000 4,834,000 4,625,000
(a) Primarily related to the sale of 23 JB's Restaurants in Oregon and western Washington.
(b) Charge to close and write-down certain underperforming restaurants, including the company's Sbarro restaurants.
(c) Adoption of Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes."
-0- 11/15/93
/CONTACT: David E. Pertl, VP and CFO, 801-974-4300/
(JBBB HTBB)

CO: JB's Restaurants Inc. ST: Utah IN: LEI SU: ERN

LM-LS -- LA008 -- 4255 11/15/93 09:18 EST

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